China has drastically increased its trade conflict with the United States. The Chinese government announced a surprising 84% tax rise on American goods, which will take effect on April 10, 2025. This decision is in response to Trump's recent 104% tariff increase on Chinese goods.
China has also added 12 US corporations to its export control list. Six others, including Shield AI and Sierra Nevada Corporation, have been designated "unreliable" and barred from conducting business in China. The statement sent shockwaves through the worldwide markets. US stock index futures have fallen. Even safe-haven assets such as US Treasuries saw sell-offs.
At a WTO trade summit, China chastised the United States for breaking global trade norms. They cautioned that reciprocal tariffs would backfire and undermine the US economy. Trump stays defiant. He pushed businesses to migrate to the United States, promising zero tariffs and quick energy access. "Don't wait, do it now!" he wrote on Truth Social.
The S&P 500 is approaching bear market territory due to the intensifying trade war. Bitcoin temporarily fell below $76,000 as global markets responded to the news.
